GLOBAL VALUE CHAIN ANALYSIS Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

GLOBAL VALUE CHAIN ANALYSIS Case Solution

Captive– In captive governance, few buyers can exert a high power on small suppliers. The lead firms have all the details of the suppliers and the switching costs are high for both the actors.

Hierarchy– It is present in chains based on the vertical integration systems, whereby the products are produced in-house, as there is less availability of the competent suppliers.

1.Upgrading

Upgrading refers to shifting towards high value activities in GVCs, in order to increase the benefits of participation in the global economy. Humphrey and Schlitz (2002) have identified four upgrading types, which include: process, product, functional or chain (inter-sectorial) upgrading. Moreover, Fernandez Stark (2014), identified other upgrading types, including: entry in value chain, backward linkages and end market upgrading.

2.Local Institutional Context

The local institutional context refers to the participation of a country in each value chain’s activity, in reference to the national, local and international standards and rules. GVCs are impacted by different economic, social and institutional factors, present in each environment. For instance: the global value chains are impacted by the economic factors including the availability of labor and resources at cheaper costs.

3.Stakeholder Analysis

This dimension involves the identification of key stakeholders and their roles in the global value chains. The common stakeholders in the value chain include: companies, workers, governments, and foreign trade ministries etc.

Global Value Chain Analysis – Recent Applications

·Participation of SMEs in Regional and Global Value Chains in Agro Industries

The SME’s insertion into global value chains plays a vital role in reducing the poverty and improving the living standards, as it creates employments and raises the income levels. The participation of SMEs in the global value chains is dependent on four elements, which are explained by the Duke CGGC’s model. These factors represent the major constraints in sustainable inclusion of SMEs in the value chains. (See Appendix 2)

Access to Market – The governance on food security has shifted the traditional spot markets to a direct relationship need between the buyer and seller for the trade of harvesting crops. It requires the producers to maintain relationships with buyers in order to maintain a sustainable inclusion in value chain.Access to Training – The sophisticated agro –food value chains and the traditional methods of harvesting the crops requires the farmers to be provided with entrepreneurial, technical and soft skills. Coordination & Collaboration building needs to occur at two levels, i.e. horizontal coordination between the producers to create opportunities as well as add value by reaching the economies of scale and vertical coordination, i.e. with other actors in the supply chain in order to find synergies and improve the performance of a value chain. Access to Finance–The inclusion in value chain requires investment from the SMEs to cover the costs related to the equipment and infrastructure etc., but they lack credit access due to high risk and lack of guarantees etc.

·Globalizing Service Sectors in World Economy – Offshore Services

Different structural changes in the local industry and world economy have led the companies to outsource their operations. Such initiatives have led to the development of off-shore industry as a rapid growing sector. In order to improve their performance efficiencies; the companies look for human resource management, customer support, finance, procurement and operations through offshoring the services. It reduces the company’s overall cost and makes its operation more effective and efficient.

·Workplace Development and Global Value Chains

The new application of the global value chain analysis includes the development of workforce. Duke GCCC has developed the skills dimensions, which allows the companies to measure the participation of the workforce. The participation of workers can be based on the skill levels, in order to understand their conditions and challenges in the value chain. The skills are divided into five main categories, which are explained in the Appendix 3.........................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

GLOBAL VALUE CHAIN ANALYSIS Harvard Case Solution & Analysis